The ACCC has revealed examples of the types of business loans that could be included in the scope of the newly expanded Consumer Data Right.
In December 2020, the Consumer Data Right rules were amended to enable more business customers of banks to use it and share their data with accredited data recipients.
As such, CDR will be expanded to non-individuals (such as companies) and more business partnerships from 1 November 2021, starting with the primary brands of the major banks.
The Australian Competition and Consumer Commission (ACCC) has now reviewed its guidance on the type of products that could be shared under the updated CDR and how it would apply.
The products are generally limited to those that are publicly offered products (for example, those with standard form contracts).
Business loan/finance products that require a high level of negotiation between the lender and the customer (in particular where a product is especially designed, or highly customised, for the customer) the more likely the product is out of scope for the CDR.
Further, loans that require a large amount of negotiation – only offered to institutional and wholesale banking clients or only available only via a relationship manager – are unlikely to fall under the scope of the amended CDR, the ACCC suggested.
While the ACCC said it was up to the data holders (i.e. the banks) to consider whether their products fall within the scope, it provided the following examples for illustrative purposes:
[Related: The opening up of data]
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
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